American Medical Systems' Total Revenue Increases 58 Percent to $115.4 Million; Core Revenue Increases 18 Percent.Strong Financial Performance Driven by Balanced Growth MINNEAPOLIS -- American Medical Systems Holdings, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :AMMD AMMD Aerodynamic Mass Median Diameter ) reported revenues of $115.4 million for the fourth quarter of 2006, a 58 percent increase over revenues of $73.1 million in the comparable quarter of 2005. The fourth quarter of 2006 included $29.1 million of revenue from the Laserscope business and was the first full quarter of Laserscope financial results since the July 2006 acquisition was completed. Excluding Laserscope revenues, AMS AMS - Andrew Message System revenue for the fourth quarter of 2006 was $86.3 million, which represents 18 percent growth over the same quarter of 2005. As noted in the Company's January 5, 2007 press release announcing preliminary sales, this growth represents strong and balanced contributions from both men's and women's health Women's Health Definition Women's health is the effect of gender on disease and health that encompasses a broad range of biological and psychosocial issues. . Fourth quarter growth over the prior period was impacted by $0.9 million of favorable foreign exchange rates. Revenues for 2006 totaled $358.3 million, including $47.6 million of revenue from the Laserscope business. Excluding Laserscope revenue, AMS revenue for 2006 was $310.8 million, an 18 percent increase from 2005 revenue of $262.6 million. Martin J. Emerson, President and Chief Executive Officer, commented, "We are very pleased with the financial results of the fourth quarter of 2006, which exceeded the top end of both our revenue and earnings expectations. Our fourth quarter performance capped off a very successful year which included the completion of three significant acquisitions. These acquisitions, combined with our internal development programs, have provided us with the most robust product technology platform at any time in our history. We have made significant strides in our integration of these businesses and enter 2007 with strong financial and new product momentum." The Company reported net income for the fourth quarter of 2006 of $5.9 million, or $0.08 per share. This compares to net income for the same period last year of $14.6 million, or $0.20 per share. Net income for the fourth quarter of 2006 includes a loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , the impact of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 123(R) expense, in-process research and development (IPR&D) charges, and certain tax items. Adjusting for these items, net income in the fourth quarter of 2006 would have been $13.0 million, or $0.18 per share. Fourth quarter of 2006 net income also included Laserscope related finance charges and amortization expense of $7.4 million, or $0.10 per share. The Company reported a net loss for 2006 of $49.3 million, or $0.70 per share, compared to net income of $39.3 million, or $0.55 per share in 2005. Adjusting both periods for the following items: loss from discontinued operations, the impact of SFAS 123(R) expense, IPR&D charges, commitment fees for bridge financing Bridge Financing A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Notes: These funds are usually supplied by the investment bank underwriting the new issue. , and certain tax items, results in net income for 2006 of $49.8 million, or $0.69 per share, compared to net income for 2005 of $48.5 million, or $0.68 per share. Full year 2006 net income also included Laserscope related finance charges and amortization expense of $14.7 million, or $0.20 per share. A reconciliation of reported net income to non-GAAP adjusted net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the is presented below. A similar analysis of these items on a pre-tax basis is shown as part of the accompanying exhibits: [TABLE OMITTED] (a) Relates to the operations of the aesthetics business, which was acquired as part of the Laserscope acquisition and was sold in January 2007. (b) Represents SFAS 123(R) stock compensation expense. SFAS 123(R) was implemented in first quarter of 2006. (c) Consists of the initial charge and subsequent purchase accounting adjustments related to the acquisitions of BioControl bi·o·con·trol n. See biological control. biocontrol See biological control. Medical, Ltd., Solarant Medical, Inc., and Laserscope, and the effect of a milestone payment related to the July 2005 acquisition of Ovion; the 2005 adjustment relates to the initial purchase of Ovion. (d) Consists of fees incurred for bridge financing commitments related to the acquisition of Laserscope. (e) Relates to the first three quarters of benefit from the recently reinstated research and development tax credit. The tax credit was available throughout 2005 until it expired at the end of that year and was therefore not included in the first three quarters of 2006. The full year impact of the reinstatement Reinstatement The restoration of an insurance policy after it has lapsed for nonpayment of premiums. of this credit is $1.5 million, or $0.02 per share. (f) Includes certain tax items, the largest of which was the receipt of a $2.4 million tax refund Tax refund Money back from the government when too much tax has been paid or withheld from a salary. resulting from prior years' tax audits. Future quarters' adjusted net income will include the impact of stock based compensation expensing. Net income from continuing operations, as adjusted, including the impact of stock based compensation expensing, is $0.15 per share for the fourth quarter 2006. Outlook For 2007, the Company reiterates the guidance provided in its January 5, 2007 press release for revenue in the range of $490 to $515 million, and reported net earnings from continuing operations per share of $0.76 to $0.81. Guidance for 2007 and thereafter includes the impact of stock based compensation expensing as required under SFAS 123(R). The Company projects first quarter revenue to be in the range of $113 to $118 million and reported net earnings from continuing operations per share to be in the range of $0.13 to $0.15. Earnings guidance for the first quarter and 2007 exclude the one time gain realized from the recently announced settlement with Celsion Corporation. Earnings Call Information American Medical Systems will host a conference call today at 5:00 p.m. eastern time to discuss its fourth quarter and 2006 results and guidance for 2007. Those without internet access See how to access the Internet. may join the call from within the U.S. by dialing 800-886-7217; outside the U.S., dial 706-679-3821. A live webcast of the call will be available through the Company's corporate website at www.AmericanMedicalSystems.com and available for replay three hours after the completion of the call. About American Medical Systems American Medical Systems, headquartered in Minnetonka, Minnesota For other uses, see Minnetonka (disambiguation). Minnetonka is a suburban community located eight miles west of Minneapolis in Hennepin County. Its 2000 population of 51,480 makes it the fourteenth largest city in Minnesota. , is a diversified supplier of medical devices and procedures to cure erectile dysfunction Erectile Dysfunction Definition Erectile dysfunction (ED), formerly known as impotence, is the inability to achieve or maintain an erection long enough to engage in sexual intercourse. , benign prostatic hyperplasia benign prostatic hyperplasia n. Abbr. BPH A nonmalignant enlargement of the prostate gland commonly occurring in men after the age of 50, and sometimes leading to compression of the urethra and obstruction of the flow of urine. , incontinence, menorrhagia menorrhagia /men·or·rha·gia/ (men?ah-ra´jah) hypermenorrhea. men·or·rha·gia n. See hypermenorrhea. , prolapse prolapse Protrusion of an internal organ out of its normal place, usually of the rectum or uterus outside the body when supporting muscles weaken. The membrane lining the rectum can push out through the anus, most often in old people with constipation who strain during and other pelvic disorders in men and women. These disorders can significantly diminish one's quality of life and profoundly affect social relationships. In recent years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time number of people seeking treatment has increased markedly as a result of longer lives, higher quality-of-life expectations and greater awareness of new treatment alternatives. American Medical Systems' products reduce or eliminate the incapacitating in·ca·pac·i·tate tr.v. in·ca·pac·i·tat·ed, in·ca·pac·i·tat·ing, in·ca·pac·i·tates 1. To deprive of strength or ability; disable. 2. To make legally ineligible; disqualify. effects of these diseases, often through minimally invasive therapies. The Company's products were used to treat approximately 240,000 patients in 2006. Forward-Looking Statements This press release contains forward-looking statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the market opportunities, future products, sales and financial results of American Medical Systems and Laserscope and the combined business. These statements and other statements contained in this press release that are not purely historical fact are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, that are based on management's beliefs, certain assumptions and current expectations. These forward-looking statements are subject to risks and uncertainties such as successfully competing against competitors; physician acceptance, endorsement, and use of AMS and Laserscope products; potential product recalls; successful integration of Laserscope into AMS' business; successfully managing increased debt leverage and related credit facility financial covenants; factors impacting the stock market and share price and its impact on the dilution of convertible securities, reliance on single or sole-sourced suppliers; successful upgrade of global software system; loss or impairment of a principal manufacturing facility; clinical and regulatory matters; timing and success of new product introductions; patient acceptance of the Company's products and therapies; changes in and adoption of reimbursement rates; adequate protection of the Company's intellectual property rights; product liability claims; and other risks and uncertainties described in AMS' and Laserscope's Annual Reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005 and the Company's other SEC filings. Actual results may differ materially from anticipated results. The forward-looking statements contained in this press release are made as of the date hereof, and AMS undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events. More information about the Company and its products can be found at its website www.AmericanMedicalSystems.com and in the Company's Annual Report on Form 10-K for 2005 and its other SEC filings. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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